[NEWS] 121206 Korean K-Pop Idols JYJ Win Contract Break

After a three-and-a-half year struggle, the phenomenally popular K-pop group JYJ has finally won its campaign to free itself from SM Entertainment, South Korea’s biggest talent management company.

The settlement, in closed-door arbitration, leaves SME and other Korean impresarios facing a rear-guard action to preserve contracts made with other unwitting adolescents in their stables that usually run well beyond a decade and longer.

The members of JYJ, Kim Jaejoong, Park Yuchun and Kim Junsu, had been caught up in a 13-year iron-clad contract that left virtually no possibility of being paid commensurate with their previous earnings as three fifths of Asia’s premier pop phenomenon DBSK/TVXQ, which they left to form their own group.

The JYJ legal wrangle with SME actually ended to all intents and purposes some time ago. JYJ filed an injunction to invalidate their contract in 2009, which the court accepted so that JYJ could continue to work and conduct independent activities. In April, 2010, however, SME sued to clarify the validity of the contract. The court ultimately affirmed JYJ’s side and further ruled that SME was to pay a fine for each known instance of interference in JYJ’s career activities, which were many and varied. In the meantime, despite the group’s phenomenal popularity, Korea’s entertainment world cartel came down on them, effectively keeping them off the air, not only in Korea but Japan as well.

On Sept. 13, the Seoul District Court postponed indefinitely a reading of its verdict in the final case in favor of mandatory arbitration. South Korea’s broadcasting networks agreed that they would uphold the ban “until a verdict is reached in the lawsuit,” despite the fact that the court said two years previously that SME’s action was illegal and punishable by a fine. That meant that as long as SM continued to stonewall, refusing to budge in negotiations on how much money it actually owed, the banning of the group continued.

“What we were worried about was that literally every artist in the K-Pop industry was going to benefit from their fight except JYJ if this case sat in the limbo of mandatory arbitration indefinitely and SME simply refused to compromise,” one observer said.

The instances of interference with JYJ’s career activities during the three and a half years of the legal battle were numerous, continuing and well-documented, as pointed out in an Oct. 9 Asia Sentinel article here.

Given SME’s economic clout within the industry, the entertainment giant has been accused of having a serious impact on JYJ’s ability to perform on any broadcast media outlets, including radio and TV. JYJ were banned from award shows, concert venues inside South Korea and various music charts.

However, in a press statement on Nov. 28 SME suddenly said it had decided to wrap up the issue “to avoid bringing additional harm to U-Know Yunho and Max Changmin, (the other members of TVXQ (DBSK), and to avoid making any more unneeded issues.”

The three “have confirmed that they are not willing to be active any longer as TVXQ, and so SM Entertainment has decided that there is no need for the company to continue to manage the three.” According to the release: “We have also decided not to interfere in each other′s matters in the future, and this is how the trial has come to an end with today′s hearing.”

Like everything else South Korea approaches, including devoting fanatical attention to quality in the manufacture of cars, television sets and consumer electronics, the production companies practice some of the most intensive entertainment training on the planet. They have reaped the rewards by creating K-pop groups whose influence has spread far beyond South Korea’s borders. Girls’ Generation, another SME-managed group, has appeared on the popular David Letterman show in the US.

SM and other entertainment management companies have defended these long-term contracts by saying the costs of housing, grooming, feeding and training adolescents for five years or more can run into the millions of dollars and that such onerous contracts are a way of getting their money back.

Nonetheless, the furor over the so-called “slave contracts,” in which some pop stars make little more than US$150 per month while earning the production companies millions, has had a serious impact on the bottom line and stirred wider concerns.

For instance, the Korea Fair Trade Commission some months ago ordered sweeping changes regarding how long contracts can be in effect and demanded many other changes for the entertainment companies based on revelations at the JYJ trial.

On Nov. 14, SM Entertainment experienced what analysts refer to as “earnings shock” when third-quarter results were less than half what they told analysts to expect. The share prices nosedived, taking many other entertainment shares down with them and earning a shower of complaints and inquiries from institutional investors. In the week following, SME lawyers abruptly restarted the long-stalled negotiations that had held up the JYJ settlement.

As recently as two weeks before the JYJ settlement, SME claimed that their disastrous results were attributable to huge production costs of TVXQ and Super Junior Arena Concerts. This assertion seemed self-serving to fans in that SM was regarded as blaming their artists for bad financial decisions over which they clearly and contractually had no control.

Thus final question is whether JYJ will be allowed back on South Korean television. Their popularity and best-selling albums would seem to indicate that they deserve to be there. Yet their remarkable domestic and international fandom is if anything more concerned than ever that even with the affair’s conclusion, SME’s ability to control the dialogue could mean TV producers will continue to give one excuse after another as to why they may not appear.

Executives of media outlets have so far not been particularly encouraging on the subject. When asked about the conclusion of the case, KBS Chief Director Chon Jinkook told local media said “I think we can tell about our position after taking and arranging the situation. As the main reason was the ruling.. So, in my opinion, there’s no reason to block their appearances on our programs if it is clearly solved.”

Won Mansik, the Chief Director of station MBC said: “Although the ruling was over. I think their appearances need time.” Another MBC official said “We have no discussions about their appearances on our programs (including our music programs and entertainment programs) until now. I think the whole entertainment part should think about this for now.”

Park Seungmin of SBS ‘Inkigayo’ said “It’s the problem of the whole entertainment part. We still have no discussion about this.. So I have no words about this?”

Fans of JYJ have vowed to see them on TV. They will not back down easily. With the November 28 ruling, the lawsuit is over and JYJ have been granted their freedom. But what’s next remains uncertain.

(The writer is a US-based songwriter and music publisher concerned with the cause of justice for recording artists in South Korea.)

@Chunnie’sEyeLashes
After I become JYJ fans, I wonder why it so difficult to see their MVs in my country coz in Malaysia there’s KPOP Hitz, KPOP wave, Inkigayo, Music Bank, OK Karaoke etc on astro channel..Later on, I’ve known that they have law issue but because of that I keep looking their mvs crazily on YT…And I really amazed how they will be thissss famous even though can’t appear in tv station..It is because their talents is more than other idols..3 of them can do solo projects successfully n it’s more way better when do grouping projects..
When they still hesitate to invite them to appear in tv, it’s really a waste but yeah they still popular n can capture our hearts rite..
GO GO GO JYJ !!!

If you realized, in the earlier days of kpophitz, they did play dbsk videos-e.g mirotic, my destiny, kiss baby sky, but then when the lawsuit started i just cannot see jae,yoochun or junsu on tv at all.!.if they wanna say that those dbsk videos are old and out of date, but they still play old videos of SS501.. sometimes i feel like they just want to erase these 3 boys from the tv screen…do all they want, but they can never erase these boys from my heart! 🙂

In my opinion, well I kinda disagree… appearing on TV is one of the fastest ways to get fans.. Did you not see the recent giveaway contest on jyj3?? I couldn’t help but notice, that most of the comments said that they became fans after watching Yoochun in SKS.. or from when they were 5 and appearing almost everywhere… The jyj fan base is growing, but quite slow compared to others… There are some junior groups with fan bases that are growing ever so quickly that it is frightening.. The only reason why SM’s artists have such huge fan bases is because they are literally EVERYWHERE!! to the point that even if you don’t want to know them, you just will.. As for JYJ, people will have to specifically search for them on the internet, or find them by luck through friends… of course once JYJ are discovered, the people’s hearts will be captured immediately and never released ;P

If I had to turn the growing rate of their fan bases into math, I would say JYJ have a linear function, while most others have exponential functions… They both reach infinity at some point in time… But the exponential function will reach it in a very short time… Just saying.. (sorry for the maths, I just had to ;P)

And of course I don’t disagree with “JYJ is already famous overseas, all around the world if i must say”… JYJ do have a remarkably huge fan base… However, others will start to catch up in no time.. (in terms of fan numbers only)

A lot of fans say numbers are not important, that’s kinda true too.. But sometimes the bigger the noise, the bigger the effect.. I feel that companies like SM and the broadcasting stations are more afraid of numbers than true words from a few individuals..

That is why we fans should never stop demanding them to appear on TV, or doing what ever it takes to support them… and that’s not the only reason, JYJ themselves dream to appear on TV again and are tiered of getting blocked all the time.. they deserve to receive awards and blow the roof off charts too.

so your agree with SME , JYJ off TV and radio regarding the music scene

Bravo, its fans like you that make SME happy and JYJ sad.

music broadcast if denied for a singer, that is the worst thing for a singer, JYJ all said this and expressed in more than one interview they want to perform their music on music shows and appear on variety shows.

and when their albums for the past 3 years rank 1st in album sales, they are more deserving to receive awards, at least nomination in national music votes as recognition of their talent , and attend music award ceremonies.

when your big, you appear on TV, that’s the logic of the world, especially the universal music industry both locally and abroad. Letterman and famous French Talk shows interviewed SNSD because they appear on Korean TV, because SNSD win national music awards, its official recognition do you understand ? when JYJ don’t receive awards because of SME’s interference in JYJ’s music careers its like saying JYJ never got ranks 1st topping SNSD’s music.

don’t side with what SME wants, side with what JYJ want.

and don’t you want the world to see Yoochun perform his music on TV ? why SNSD has the right and JYJ denied when JYJ work so hard, JYJ deserve TV recognition exactly in the music scene , they work hard. saying they don’t need TV is seriously painful thing to say and an ideaology spread by SME to trick fans like you into accepting JYJ’s ban.

i don’t mean to be harsh i am harsh but its the truth, i saw many fans accept JYJ’s ban done to JYJ by non other than SME through the help of broadcast stations .

we fans need to take a side, and its either JYJ broadcast on music shows and entertainment variety shows, Or JYJ’s ban from broadcast. if you say JYJ do not need it, whoever says that, is siding with JYJ’s ban situation, supporting SME’s efforts in accomplishing it.

whoever says JYJ do not need broadcast in the music scene, i say congratulations to you and SME, because JYJ are not broadcast .

SNSD are, Psy is, Maddonna, Miley, all singers are broadcast on TV, Michael Jackson was broadcast on TV on music shows , SNSD are closer to Michael Jackson enough to deserve broadcast Like MJ but JYJ are not ?

singers of various level, low or high all got broadcast.

are you saying that big shot singers should be banned ? MJ should have been banned then ? let those who are less in level of popularity get the broadcast ,while those who are topping pop in their own country should be banned ?

that’s justice and fairness ?

that’s not even logical and not acceptable, JYJ MUST be broadcast on music shows and entertainment shows period.

I don’t really care that JYJ cannot appear in local reality show. coz they can always find another way to overcome it. when the mass media and SM were giving JYJ lemon, they turn it into lemonade. they have their own private DVD, so the fans will know about with their private lives. CJes always share their videos on Youtube. they always tweet their cheeky pictures together. JYJ is just great, and they have been walking in the path that no other idols can do. because they are JYJ. the name alon describe it all.

I believe JYJ will continue to excel in their own way because JYJ has the best support from the fans. JYJ will continue to soar worldwide. and when that time come, the mass media, press, broadcasting station, will all come demanding for JYJ appearance. and when that time come, I’m going to shout “SCREW you” at those cowards SM slave.

I think with the way things are, JYJ are doing fine EVEN without the power of television. People forget about the power of the internet. I don’t think even SM knows about the power of the net, the industry itself needs to not underestimate what the internet can do as appose to television.

I know JYJ have used internet in the pass to overcome this but I hope, C-JeS does more research into other things they can do to manipulate the audience by not using television but the internet. They forget that not many people watch TV any more but just rely on their internet, use that C-JeS before SM one day takes over all together.

Also I’m not that surprised that these broadcasting stations have said to give time for JYJ to appear. I should be surprised given that, after H.O.T’s lawsuit, they got to appear almost immediately after, same for Shinhwa but why JYJ is different? First of all it would be awkward for a start if JYJ were to appear in a show like ‘WinWin’ for example, I mean these boys are not going to lie about their 3 years of this annoyance including these TV station’s blockage. Secondly (and this is just speculation) these boys might know something we don’t and, these TV stations know but don’t want revealing so it’s safer for them to give it time to let them appear. I would honestly wait till the new year to see how long they can ‘not’ let them appear on TV.

If TV Broadcasting of JYJ is the problem in SK then there not be a cable TV channel or just a small TV company which will broadcast only JYJ activities, variety shows, dramas etc. Will it be very very expensive, too labourous or too soon?

I’m not believing any of SK tv channels to support JYJ for live music show. But i believe JYJ and Cjes are doing fine. Who knows, they might have their own broadcasting station in the future.
Yeah, SM’s artists are everywhere to the point i don’t bother to know about them anymore because…they all are stereotype. Peh, and they tried to say their profit are poorer bcos of SJ and DBSK? Really ungrateful company!

Lee Soo Man, in the past, appeared on MBC for a music award, given to for his song, yes before he formed SME. at that time Lee was a singer, he got one award for music in the whole of his sinning career life, just one song was successful, on MBC k-pop music awards at that time , he did not have power over MBC then, he formed SME, then got power over MBC and others, Today, lol he was under them now they under him, and one phone call and that envious jealous greedy monster can get any successful singer banned. i think Lee Soo Man hates k-pop , hates music, he felt inferior so he controlled the korean music industry overpowering MBC and other music broadcast shows. Lee has become the one on top in the music industry, the controller of the industry, a dictator, his company SME uses the system to abuse k-pop singers to get him money and recognition he didn’t have before SME. its why he makes singers working for him to say “thank you to Lee Soo Man we couldn’t have done it without him” Lee has this inferiority he has to make k-pop singers under him thank him. every SME singer has to thank him and obey his orders give him fame and money.

in the end , Lee got power because he got broadcast first, and while he was still forming SME too.

before SME, singers weren’t threatened of being banned/blacklisted. not even during South Korea’s last dictator government.

I do care if JYJ appear on SK national TV, because it’s what they wish to do.

What makes me really angry are the statements of the Chief Director of station MBC and of SBS’s ‘Inkigayo’… what’s the freakin problem now… why can’t they still appear on TV?
It’s just pathetic, nothing else…!!!

Can someone explain to me how or why SME earnies dropped so dractically? Were it because maybe some fans stop supporting TVXQ and Super Junior concerts. I mean maybe they did not make as much money off their concerts because some fans were fed up with what SME was doing to JYJ and they descided to no longer support them by not going to their concerts. If this happens surely SME would loose a lot of money. SME has gained a bad representation because of the horrible treatment they have been doing to JYJ and they know it. Also, I am sure they have been spending a lot of money paying people to block JYJ. This is why they really wanted to settle with JYJ all of a sudden.

“On Nov. 14, SM Entertainment experienced what analysts refer to as “earnings shock” when third-quarter results were less than half what they told analysts to expect. The share prices nosedived, taking many other entertainment shares down with them and earning a shower of complaints and inquiries from institutional investors. In the week following, SME lawyers abruptly restarted the long-stalled negotiations that had held up the JYJ settlement.”

“As recently as two weeks before the JYJ settlement, SME claimed that their disastrous results were attributable to huge production costs of TVXQ and Super Junior Arena Concerts. This assertion seemed self-serving to fans in that SM was regarded as blaming their artists for bad financial decisions over which they clearly and contractually had no control.”

There were fans who chose to no longer support the current TVXQ at the beginning and after the breakup, so they did lose fans. However, TVXQ’s Japanese Tone tour did significantly well earning a reported 90 million dollars. There “Catch Me” tour in Seoul sold out as well, and they will be performing in Japans largest venues in 2013. I do not follow Super Junior but I believe their Super Show 4 tour did well too. It is unfortunate SM chose to blame their poor showings on two of their most popular groups and not their excessive overspending and unnecessary ventures..like SM The Movie and the Smart Exhibition,their venture into the travel industry, and EXO’s 20 or so teasers. I guess SM chose to blame TVXQ and Super Junior for their loses because they don’t want to admit to themselves that they made poor choices and plus its easier to blame grown men instead of the rookies or the female groups..but most fans know TVXQ and Super Junior are doing extremely well and selling out their concerts.

“Can someone explain to me how or why SME earnies dropped so dractically? Were it because maybe some fans stop supporting TVXQ and Super Junior concerts.”
correct me if im wrong, but i think majority of the investors smelled the dirty tricks the SME did with the media. the extravagant claimed that they earned “this much amount” contradicts their financial report. so why remained your stocks in a company if you already doubting if the company will be giving dividends. its better to sell now than suffer further loss in the next day.

Let’s not forget that SM’s promise of no further interference is a part of the court approved settlement. Aside from the rather amazing fact that they seemed to be all but admitting they HAD been interfering with JYJ’s activities all of this time, they have given their word, on the record and in a public statement that they will no longer do so. So now fans need to hold them to it. And of course we all need to lobby the TV stations to book JYJ!

The road back to SK tv is not going to be smooth. It will take sometime. The huge plus for the members of JYJ is that they have options and an agency that makes it possible for them to utilize their incredible talents. They will not be relegated to the dustbin of history, no matter what LSM wants.

I am a strong believer in the Universe correcting itself. SM’s stock crash falls in this category. It forced SM to quickly settle the lawsuit, even though quietly, but settle it they did. This crash also showed the weakness in SM’s structure. Over extending oneself leads to some sloppy results. And since SM is not about class, i.e. they put blame where it doesn’t belong, on others. But then again, that’s not my problem.

I repeat…

“First they ignore you, then they ridicule you, then they fight you, and then you win.”
― Mahatma Gandhi

“Remember that all through history, there have been tyrants and murderers, and for a time, they seem invincible. But in the end, they always fall. Always.”
― Mahatma Gandhi,

Actually, I don’t understand the whole situation. But I wanna share my thoughts. Forgive me if I make some mistakes.

——–

Does someone know ‘Lee Seung Chul’ (One of the judges of Superstar K4)?? Superstar K4 is the most successful singing audition in Korea hosted by MNet.

Lee Seung Chul also have the same experience of banning from all television appearances for 5 years. But his amazing talent and skills made him ‘King’ of Live concerts. And now, he has become the Judge of Superstar K for all seasons.

In 1990, Lee was convicted of smoking marijuana, and his long road of trials and tribulations began. He was banned from all television appearances for five years. He would marry in 1995 to a high-flying actress Gang Moon-Yeong, but would divorce in two years. Through these disastrous PR events, Lee was utterly banished — Lee recalls that even a gig singing at a club was difficult to come by.

This was the period in which Lee grabbed his lemons and made delicious lemonade. Because he could not show up on television, he focused his entire energy on live concerts and albums. His natural talent would shine through even without television — in fact, Lee’s presence as the “Emperor of Live Stage” would stand as a welcome contrast to the lip-synching corporate bands that came to dominate the scenes starting mid-1990s. Finally in 2002, Lee reunited with Born Again to sing Never Ending Story, probably the first number one song not sung by a corporate band in around five years.

Lee Seung-Cheol then made a surprisingly smooth transition into the celebrity world of today — in which artists are not merely judged for their music, but their ability to give an entertaining talk in silly talk shows. He would continue to survive and thrive, while continuing to make music and release albums.

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We all know that JYJ is a group of talented singers (and also good actors) and they are recognized and popular worldwide even without the help of Broadcast media stations. But we all hope that JYJ should have the right to appear on Music shows in Korea.

The day when JYJ appear on Music shows will come one day for sure. However, we, the international fans of JYJ, must stand up and take actions as much & quick as we can to help JYJ.